Underwear - UK - February 2012

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Forecast sales of underwear, at current prices, 2006-16
Market factors
Ageing population poses a challenge
Figure 2: Trends and projections in the age structure of the UK adult population, 2006-16
Upward mobility will boost the underwear market
The obesity epidemic fuels demand for bigger underwear
Demand for maternity underwear mirrors birth trends
The consumer
Women are the primary purchasers
Figure 3: Consumers who have purchased any underwear in the last 12 months, by gender, age, socio-economic group and presence of children, December 2011
M&S dominates the underwear market
Figure 4: Outlets from which underwear was bought for self or someone else in the last 12 months, by gender, December 2011
Asda is marginally more popular than Tesco
Value retailers and La Senza are most popular among youths
Next leads the mid-market
Women’s briefs come top
Figure 5: Underwear items bought or received by women in the last 12 months, December 2011
The appeal of thongs is limited to youths
Youths are attracted to enhancing and multiway bras
35-44s prefer both co-ordinated sets and shapewear
Men opt for baggy boxers
Figure 6: Underwear items bought or received by men in the last 12 months, December 2011
Vests vs thermals
Replacement drives purchasing
Figure 7: Reasons that have prompted underwear purchase, by gender, December 2011
Youths want attractive underwear
New mums require new lingerie
ABs fuel pre-holiday and special event underwear sales
Comfort is vital
Figure 8: Attitudes towards underwear, by gender, December 2011
Women enjoy the feelgood factor
Over-45s are creatures of habit
Gifting has potential for growth
What we think
ISSUES IN THE MARKET
How can retailers drive non-replacement purchasing?
What categories are fuelling growth within the underwear market?
What opportunities are there for multichannel retailing?
What role does fashion play within the underwear market?
How can retailers encourage gift purchasing?
What does 2012 have in store for the underwear market?
FUTURE OPPORTUNITIES
Trend: Make It Mine
Trend: Premiumization and Indulgence
INTERNAL MARKET ENVIRONMENT
Key points
Downturn in women’s lingerie purchasing
Figure 9: Trends in men buying men’s underwear and women buying women's underwear in the last 12 months, 2007-11
Men’s underwear buying lags behind women’s
Gift purchasing is in decline
Figure 10: Trends in women buying men's underwear, 2007-11
Figure 11: Trends in men buying women's underwear, 2007-11
Women are buying less
Figure 12: Trends in amount spent on women's underwear, 2007-11
Figure 13: Trends in amount spent on men's socks and underwear, 2007-11
Demand for larger bras as Britons get bigger
Figure 14: Trends in obesity, by gender, 2007-11
Low body confidence among women
Figure 15: Body-related insecurities, April 2011
Sporting activities present opportunities
Figure 16: Regular participation in individual sports, by gender, 2011
BROADER MARKET ENVIRONMENT
Key points
Shifting age structure
Figure 17: Trends and projections in the age structure of the UK adult population, 2006-16
ABs present an opportunity for premiumisation
Figure 18: Forecast growth of the UK population, by socio-economic group, 2006-11 and 2011-16
Annual birth rates have jumped since 2006
Figure 19: Total number of births in the UK, 2006-16
The end of price deflation
Figure 20: Inflation in clothing and footwear, January 2008-December 2011
A glimmer of optimism as consumer confidence climbs by 4 percentage points
Figure 21: Trends in consumer confidence, January 2008-January 2012
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Advancements in shapewear
Ethical underwear
Celebrity lines
New launches
Mad Men mania
Multichannel advancements
Figure 22: Figleaves.com iPad app
Marketing initiatives
COMPETITIVE CONTEXT
Key points
Underwear market underperforms
Figure 23: UK retail value sales of underwear, at constant and current prices, 2006-11
MARKET SIZE AND FORECAST
Key points
Market continues to grow in 2011, albeit at a slow rate
Figure 24: UK retail value sales of underwear, at constant and current prices, 2006-16
Women dominate the market
Figure 25: UK retail value sales of underwear, at constant prices, by gender, 2006-16
The future
The underwear market is set to grow by 9%
Figure 26: Best- and worst-case forecasts of UK retail value sales of underwear, 2006-16
Factors used in the forecast
SEGMENT PERFORMANCE
Key points
Women’s underwear
Figure 27: UK retail value sales of women’s underwear, by type, 2006-11
Men’s underwear
Figure 28: UK retail value sales of men’s underwear, by type, 2006-11
RETAIL COMPETITOR ANALYSIS
Key points
Figure 29: Turnover of key underwear brands, 2009-11
Uplift in turnover in 2010
La Senza falls victim to the recession
Retail shares
Figure 30: UK retail value sales of underwear, % share, by outlet type, 2009-11
COMPANIES AND PRODUCTS
 SPECIALISTS
Bravissimo
Figure 31: Bravissimo Ltd product range, December 2011
Figure 32: Key financials for Bravissimo Limited, 2009 and 2010
CUK Clothing Limited (formerly Courtaulds (UK) Limited)
Figure 33: CUK Clothing Limited product range, December 2011
Figure 34: Key financials for CUK Clothing Limited, 2010 and 2011
DB Apparel
Figure 35: DB Apparel UK product range, December 2011
Figure 36: Key financials for DB Apparel UK Limited, 2010 and 2011
Eveden
Figure 37: Eveden Group Limited product range, December 2011
Figure 38: Key financials for Eveden Group Limited, 2009 and 2010
La Senza
Figure 39: La Senza UK product range, December 2011
Figure 40: La Senza Limited (UK) annual results, 2009 and 2010
Linwood Fabrics
Figure 41: Linwood Fabric Limited product range, December 2011
MJM International
Figure 42: MJM International product range, December 2011
Figure 43: Key financials for MJM International Limited, 2009 and 2010
Triumph International
Figure 44: Triumph International product range, December 2011
Figure 45: Key financials for Triumph International Limited, 2009 and 2010
Figleaves
Figure 46: Figleaves UK product range, December 2011
Figure 47: Key financials for Figleaves Global Trading Limited, 2010 and 2011
 GENERALISTS
Marks & Spencer
Figure 48: Marks & Spencer product range, December 2011
Figure 49: Key financials for M&S Plc, 2010 and 2011
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend recovers in 2010
Figure 50: Main monitored media advertising expenditure on underwear and lingerie, stockings and tights, 2006-11
Promotional peaks in May and October
Figure 51: Main monitored media advertising expenditure on underwear and lingerie, stockings and tights, percentage share, by month, January-October 2011
M&S is the leader in adspend in 2011
Figure 52: Main monitored media advertising expenditure on underwear, by company, 2010 and 2011
Press advertising holds supremacy
Figure 53: Main monitored media advertising expenditure on underwear and lingerie, stockings and tights, by media type, 2006-11
Figure 54: Adspend, by media type, percentage of total, 2006-11
THE CONSUMER – WHO BUYS UNDERWEAR?
Key points
Women drive underwear sales
Figure 55: Consumers who have purchased any underwear in the last 12 months, by gender, age, socio-economic group and presence of children, December 2011
THE CONSUMER – WHERE UNDERWEAR IS BOUGHT
Key points
Figure 56: Outlets from which underwear was bought for self or someone else in the last 12 months, by gender, December 2011
M&S dominates the lingerie market
Asda is the supermarket heavyweight
Figure 57: Outlets from which underwear was bought for self or someone else in the last 12 months – Asda and Tesco, by gender, age, socio-economic group and presence of children, December 2011
Primark leads the value retailers
Next is popular among under-35s
Debenhams draws an older crowd
La Senza attracts young women looking for sexy styles
Decline in consumers shopping at all stores
Figure 58: Outlets from which underwear was bought for self or someone else in the last 12 months, December 2010 and December 2011
THE CONSUMER – WHAT UNDERWEAR IS BOUGHT BY WOMEN
Key points
Women’s briefs drive volume sales
Figure 59: Underwear items bought or received by women in the last 12 months, December 2011
The appeal of thongs is limited to youths
Figure 60: Consumers who have bought hipsters/shorties, thongs and other pants in the last 12 months, by age, socio-economic group and presence of children, December 2011
Enhancing bras mostly bought by teens
Figure 61: Consumers who have bought co-ordinated bra and knickers sets, seamless/T-shirt bras, enhancing bras and strapless/multiway bras in the last 12 months, by age, socio-economic group and presence of children, December 2011
Functional bras
Maternity bras
ABC1 mums like to co-ordinate
Shapewear has a defined demographic following
ABs are biggest buyers of vests, camisoles and thermals
THE CONSUMER – WHAT UNDERWEAR IS BOUGHT BY MEN
Key points
Figure 62: Underwear items bought or received by men in the last 12 months, December 2011
Loose boxers are favoured by men
Figure 63: Consumers who have bought baggy boxer shorts, tight-fitting trunks/boxer shorts, briefs and Y-fronts, by age, socio-economic group and presence of children, December 2011
35-54s favour a tight fit
Older shoppers buy briefs and Y-fronts
Vests and thermals
Niche interest in thongs
THE CONSUMER – REASONS FOR BUYING UNDERWEAR
Key points
Replacement drives purchasing
Figure 64: Reasons that have prompted underwear purchase, by gender, December 2011
Young women are the biggest bargain hunters
Figure 65: Consumers who have been motivated to buy underwear because there was a promotion/sale, because of an eye-catching colour/pattern/design or to cheer themselves up/as a treat, by gender, age, socio-economic group and presence of children, December 2011
Under-25 females care about the aesthetics
New mums require new lingerie
ABs fuel pre-holiday and special event underwear sales
Gifting has more potential
New relationships/dates
THE CONSUMER – ATTITUDES TOWARDS UNDERWEAR
Key points
Comfort is all-important
Figure 66: Attitudes towards underwear, by gender, December 2011
Women enjoy the feelgood factor
Over-45s are creatures of habit
Plain underwear is more popular than sexy styles
Young prefer bra and brief sets
Gifting has potential for growth
The appeal of designer underwear is limited
APPENDIX – INTERNAL MARKET ENVIRONMENT
Figure 67: Trends in amount spent on men's socks and underwear, 2007-11
Figure 68: Amount spent on men's socks, by demographics, 2011
Figure 69: Amount spent on men's underwear, by demographics, 2011
Figure 70: Amount spent on women's underwear, by demographics, 2011
Figure 71: Men buying women's underwear, by demographics, 2011
Figure 72: Women buying men's underwear, by demographics, 2011
APPENDIX – THE CONSUMER – WHERE UNDERWEAR IS BOUGHT
Figure 73: Most popular outlets from which underwear was bought for self or someone else in the last 12 months, by demographics, December 2011
Figure 74: Next most popular outlets from which underwear was bought for self or someone else in the last 12 months, by demographics, December 2011
Figure 75: Outlets from which underwear was bought for self or someone else in the last 12 months, by most popular underwear bought or received by women in the last 12 months, December 2011
Figure 76: Outlets from which underwear was bought for self or someone else in the last 12 months, by next most popular underwear bought or received by women in the last 12 months, December 2011
Figure 77: Underwear bought, or received, by women in the last 12 months, by most popular outlets from where underwear was bought for self or someone else in the last 12 months, December 2011
Figure 78: Underwear bought, or received, by women in the last 12 months, by next most popular outlets from where underwear was bought for self or someone else in the last 12 months, December 2011
Figure 79: Underwear bought or received by men in the last 12 months, by outlets from which underwear was bought for self or someone else in the last 12 months, December 2011
Figure 80: Outlets from which underwear was bought for self or someone else in the last 12 months, by underwear bought or received by men in the last 12 months, December 2011
Figure 81: Reasons that have prompted underwear purchase, by most popular outlets from which underwear was bought for self or someone else in the last 12 months, December 2011
Figure 82: Reasons that have prompted underwear purchase, by next most popular outlets from which underwear was bought for self or someone else in the last 12 months, December 2011
APPENDIX – THE CONSUMER – WHAT UNDERWEAR IS BOUGHT BY WOMEN
Figure 83: Most popular underwear bought or received by women in the last 12 months, by demographics, December 2011
Figure 84: Next most popular underwear bought or received by women in the last 12 months, by demographics, December 2011
APPENDIX – THE CONSUMER – WHAT UNDERWEAR IS BOUGHT BY MEN
Figure 85: Underwear bought or received by men in the last 12 months, by demographics, December 2011
APPENDIX – THE CONSUMER – REASONS FOR BUYING UNDERWEAR
Figure 86: Reasons that have prompted underwear purchase, by demographics, December 2011
APPENDIX – THE CONSUMER - ATTITUDES TOWARDS UNDERWEAR
Figure 87: Most popular attitudes towards underwear, by demographics, December 2011
Figure 88: Next most popular attitudes towards underwear, by demographics, December 2011
Figure 89: Attitudes towards underwear, by most popular outlets from which underwear was bought for self or someone else in the last 12 months, December 2011
Figure 90: Attitudes towards underwear, by next most popular outlets from which underwear was bought for self or someone else in the last 12 months, December 2011